[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3353 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3353

 To amend the Higher Education Act of 1965 to require the Secretary to 
provide for the use of data from the second preceding tax year to carry 
     out the simplification of applications for the estimation and 
  determination of financial aid eligibility, to increase the income 
  threshold to qualify for zero expected family contribution, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            August 16, 2018

Mr. Booker (for himself, Mr. Blumenthal, Mrs. Gillibrand, Mr. Merkley, 
 Mr. Jones, Ms. Harris, and Ms. Cortez Masto) introduced the following 
  bill; which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
 To amend the Higher Education Act of 1965 to require the Secretary to 
provide for the use of data from the second preceding tax year to carry 
     out the simplification of applications for the estimation and 
  determination of financial aid eligibility, to increase the income 
  threshold to qualify for zero expected family contribution, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Simplifying Financial Aid for 
Students Act of 2018''.

SEC. 2. USING DATA FOR SECOND PRECEDING YEAR.

    Section 480(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 
1087vv(a)(1)(B)) is amended to read as follows:
                    ``(B) Notwithstanding section 478(a) and beginning 
                not later than 180 days after the date of enactment of 
                the Simplifying Financial Aid for Students Act of 2018, 
                the Secretary shall provide for the use of data from 
                the second preceding tax year when and to the extent 
                necessary to carry out the simplification of 
                applications (including simplification for a subset of 
                applications) used for the estimation and determination 
                of financial aid eligibility. Such simplification shall 
                include the sharing of data between the Internal 
                Revenue Service and the Department, pursuant to the 
                consent of the taxpayer.''.

SEC. 3. FAMILY CONTRIBUTION.

    (a) Family Contribution.--Section 473(b) of the Higher Education 
Act of 1965 (20 U.S.C. 1087mm(b)) is amended--
            (1) by striking the subsection heading and inserting ``Zero 
        Family Contribution'';
            (2) in paragraph (1), by adding ``or (3)'' after 
        ``paragraph (2)'';
            (3) in paragraph (2)--
                    (A) by striking the paragraph heading and inserting 
                ``Children of certain deceased veterans'';
                    (B) in each of subparagraphs (B) and (C), by 
                redesignating clauses (i) and (ii) as subclauses (I) 
                and (II), respectively and adjusting the margins 
                accordingly;
                    (C) by redesignating subparagraphs (A), (B), and 
                (C), as clauses (i), (ii), and (iii), respectively; and
                    (D) by striking ``Paragraph (1) shall'' and 
                inserting the following:
                    ``(A) Applicability.--Paragraph (1) shall'';
            (4) in paragraph (3)--
                    (A) in subparagraph (A), by striking 
                ``subparagraphs (A), (B)(i), and (C) of paragraph (2)'' 
                and inserting ``clause (i), (ii)(I), and (iii) of 
                subparagraph (A)'';
                    (B) in subparagraph (B)--
                            (i) by striking ``subparagraphs (A), 
                        (B)(ii), and (C) of paragraph (2)'' and 
                        inserting ``clause (i), (ii)(II), and (iii) of 
                        subparagraph (A)''; and
                            (ii) by redesignating clauses (i) through 
                        (iii) as subclauses (I) through (III), 
                        respectively, and adjusting the margins 
                        accordingly; and
                    (C) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and adjusting the 
                margins accordingly;
            (5) by redesignating paragraph (3) as subparagraph (B), and 
        adjusting the margins accordingly; and
            (6) by inserting after paragraph (2)(B), as redesignated by 
        paragraph (5), the following:
            ``(3) Recipients of certain means-tested benefits.--
                    ``(A) In general.--Paragraph (1) shall apply to a 
                student if--
                            ``(i) that student is a dependent student 
                        whose parent participated in a means-tested 
                        Federal benefits program at any time during the 
                        period encompassed from the beginning of the 
                        second prior calendar year through the date of 
                        filing; or
                            ``(ii) that student is independent and the 
                        student or spouse of that student participated 
                        in a means-tested Federal benefits program at 
                        any time during the period encompassed from the 
                        beginning of the second prior calendar year 
                        through the date of filing.
                    ``(B) Means-tested federal benefits program.--In 
                this paragraph, the term `means-tested Federal benefits 
                program' means--
                            ``(i) the supplemental security income 
                        program under title XVI of the Social Security 
                        Act (42 U.S.C. 1381 et seq.);
                            ``(ii) the supplemental nutrition 
                        assistance program established under the Food 
                        and Nutrition Act of 2008 (7 U.S.C. 2011 et 
                        seq.);
                            ``(iii) the Medicaid program under title 
                        XIX of the Social Security Act (42 U.S.C. 1396 
                        et seq.);
                            ``(iv) a State program funded under the 
                        temporary assistance for needy families program 
                        under part A of title IV of the Social Security 
                        Act (42 U.S.C. 601 et seq.);
                            ``(v) the special supplemental nutrition 
                        program for women, infants, and children 
                        established by section 17 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786); and
                            ``(vi) any other program determined by the 
                        Secretary to be appropriate based on--
                                    ``(I) the reliability under which 
                                the need for benefits from the program 
                                is established; and
                                    ``(II) the feasibility of data 
                                linkages.''.
    (b) Simplified Needs Test.--Section 479 of the Higher Education Act 
of 1965 (20 U.S.C. 1087ss) is amended to read as follows:

``SEC. 479. SIMPLIFIED NEEDS TESTS.

    ``(a) Simplified Application Section.--
            ``(1) In general.--The Secretary shall develop and use an 
        easily identifiable simplified application section as part of 
        the common financial reporting form prescribed under section 
        483(a) for families described in subsections (b) and (c) of 
        this section.
            ``(2) Reduced data requirements.--The simplified 
        application form shall--
                    ``(A) in the case of a family meeting the 
                requirements of subsection (b)(1), permit such family 
                to submit only the data elements required under 
                subsection (b)(2) for the purposes of establishing 
                eligibility for student financial aid under this part; 
                and
                    ``(B) in the case of a family meeting the 
                requirements of subsection (c), permit such family to 
                be treated as having an expected family contribution 
                equal to zero for purposes of establishing such 
                eligibility and to submit only the data elements 
                required to make a determination under subsection (c).
    ``(b) Simplified Needs Test.--
            ``(1) Eligibility.--An applicant is eligible to file a 
        simplified form containing the elements required by paragraph 
        (2) if--
                    ``(A) the applicant did not file and was not 
                required to file any Federal tax return during the 24-
                month period preceding the date of the determination of 
                eligibility;
                    ``(B) the applicant, or, in the case of an 
                applicant who is a dependent student, the applicant's 
                parent, participated in a means-tested Federal benefits 
                program, as described in section 473(b)(3)(B), during 
                the 24-month period preceding the date of the 
                determination of eligibility;
                    ``(C) the applicant, or, in the case of an 
                applicant who is a dependent student, the applicant's 
                parent, filed a form 1040A, 1040EZ, or 1040 (including 
                any prepared or electronic version of such form) 
                required pursuant to the Internal Revenue Code of 1986, 
                with no forms or schedules, during the 24-month period 
                preceding the date of the determination of eligibility;
                    ``(D) in the case of an applicant who is a 
                dependent student--
                            ``(i) the student's parents include at 
                        least one parent who is a dislocated worker; 
                        and
                            ``(ii) the total adjusted gross income of 
                        the parents (excluding any income of the 
                        dependent student) is less than $50,000; or
                    ``(E) in the case of an applicant who is an 
                independent student--
                            ``(i) the student is a dislocated worker or 
                        has a spouse who is a dislocated worker; and
                            ``(ii) the adjusted gross income of the 
                        student (and the student's spouse, if any) is 
                        less than $50,000.
            ``(2) Simplified test elements.--The six elements to be 
        used for the simplified needs analysis are--
                    ``(A) adjusted gross income;
                    ``(B) Federal taxes paid;
                    ``(C) untaxed income and benefits;
                    ``(D) the number of family members;
                    ``(E) the number of family members in postsecondary 
                education; and
                    ``(F) an allowance (A) for State and other taxes, 
                as defined in section 475(c)(2) for dependent students 
                and in section 477(b)(2) for independent students with 
                dependents other than a spouse, or (B) for State and 
                other income taxes, as defined in section 476(b)(2) for 
                independent students without dependents other than a 
                spouse.
            ``(3) Qualifying forms.--In the case of an independent 
        student, the student, or in the case of a dependent student, 
        the family, files a form described in this subsection, or 
        subsection (c), as the case may be, if the student or family, 
        as appropriate, files--
                    ``(A) a form 1040A or 1040EZ (including any 
                prepared or electronic version of such form) required 
                pursuant to the Internal Revenue Code of 1986;
                    ``(B) a form 1040 (including any prepared or 
                electronic version of such form) required pursuant to 
                the Internal Revenue Code of 1986, except that such 
                form shall be considered a qualifying form only if the 
                student or family files such form in order to take a 
                tax credit under section 25A of the Internal Revenue 
                Code of 1986, and would otherwise be eligible to file a 
                form described in subparagraph (A); or
                    ``(C) an income tax return (including any prepared 
                or electronic version of such return) required pursuant 
                to the tax code of the Commonwealth of Puerto Rico, 
                Guam, American Samoa, the Virgin Islands, the Republic 
                of the Marshall Islands, the Federated States of 
                Micronesia, or Palau.
    ``(c) Zero Expected Family Contribution.--The Secretary shall 
consider an applicant to have an expected family contribution equal to 
zero if--
            ``(1) in the case of a dependent student--
                    ``(A) the student's parents include at least one 
                parent who is a dislocated worker; and
                    ``(B) the sum of the adjusted gross annual income 
                of the parents is less than or equal to $36,000; or
            ``(2) in the case of an independent student with dependents 
        other than a spouse--
                    ``(A) the student (and the student's spouse, if 
                any) is a dislocated worker or has a spouse who is a 
                dislocated worker; and
                    ``(B) the sum of the adjusted gross annual income 
                of the student and spouse (if appropriate) is less than 
                or equal to $36,000.
An individual is not required to qualify or file for the earned income 
credit in order to be eligible under this subsection. The Secretary 
shall annually adjust the income level necessary to qualify an 
applicant for the zero expected family contribution. The income level 
shall be adjusted according to increases in the Consumer Price Index, 
as defined in section 478(f).
    ``(d) Dislocated Worker.--In this section, the term `dislocated 
worker' has the meaning given the term in section 3 of the Workforce 
Innovation and Opportunity Act.''.

SEC. 4. FAFSA SIMPLIFICATION.

    (a) FAFSA Simplification.--Section 483(f) of the Higher Education 
Act of 1965 (20 U.S.C. 1090(f)) is amended to read as follows:
    ``(f) Reduction of Income and Asset Information To Determine 
Eligibility for Student Financial Aid.--
            ``(1) Use of internal revenue service data retrieval tool 
        to populate fafsa.--The Secretary shall--
                    ``(A) make every effort to make available and allow 
                applicants to utilize the data retrieval tool that is 
                in existence on the date of enactment of the 
                Simplifying Financial Aid for Students Act of 2018 to 
                transfer data available from the Internal Revenue 
                Service to reduce the amount of original data entry by 
                applicants and strengthen the reliability of data used 
                to calculate expected family contributions, including 
                through the use of technology to--
                            ``(i) allow an applicant to automatically 
                        populate the electronic version of the forms 
                        under this section with data available from the 
                        Internal Revenue Service;
                            ``(ii) direct an applicant to appropriate 
                        questions on such forms based on the 
                        applicant's answers to previous questions;
                            ``(iii) identify the type of form filed and 
                        whether certain forms or schedules, as 
                        identified by the Secretary, were filed with 
                        Federal form 1040; and
                            ``(iv) allow an applicant to verify that 
                        the applicant or the family of the applicant 
                        did not file a Federal tax return without 
                        additional action on the part of the student; 
                        and
                    ``(B) allow single taxpayers, married taxpayers 
                filing jointly, and married taxpayers filing separately 
                to utilize such data retrieval tool to its full 
                capacity.
            ``(2) Strengthening the irs data retrieval tool.--The 
        Secretary shall work with the Secretary of the Treasury to 
        expand the capabilities of the Internal Revenue Service data 
        retrieval tool by--
                    ``(A) incorporating all fields from Federal tax 
                returns and W2 forms relevant to needs analysis; and
                    ``(B) incorporating line items from forms and 
                schedules identified by the Secretary into the data 
                retrieval tool.
            ``(3) Cross agency linkages.--
                    ``(A) In general.--The Secretary, in coordination 
                with the head of each agency that administers a 
                specified means-tested Federal benefits program, shall 
                examine how the agency can verify an applicant or an 
                applicant's family's receipt of specified means-tested 
                Federal benefits in order to compute an expected family 
                contribution for low-income students in order to 
                simplify, for students, the application process for 
                student financial assistance.
                    ``(B) Automatic maximum federal pell grant.--The 
                Secretary shall ensure that a student who is described 
                in section 473(b)(3) or whose adjusted gross income or 
                family adjusted gross income is less than $36,000 
                annually during the 24-month period preceding the date 
                of the determination, is a full-time student, and 
                submits a form under this section, shall receive a 
                maximum Federal Pell Grant and a zero expected family 
                contribution determination without additional action on 
                the part of the student or the family of the student.
                    ``(C) Part-time students.--The Secretary shall 
                ensure that a part-time student who is described in 
                section 473(b)(3) and submits a form under this section 
                shall receive a zero expected family contribution 
                determination.
            ``(4) Report.--The Secretary shall report to Congress 
        annually on the Department's progress in maintaining and 
        expanding the Internal Revenue Service data retrieval tool and 
        in establishing cross agency linkages, as described in this 
        subsection, and simultaneously make such reports publicly 
        available.''.
    (b) Mobile Use.--Section 483(a)(3) of the Higher Education Act of 
1965 (20 U.S.C. 1090(a)(3)) is amended by adding at the end the 
following:
                    ``(I) Mobile device format.--The Secretary shall 
                make the electronic version of the forms under this 
                paragraph available through a technology tool that can 
                be used on mobile devices. Such technology tool shall, 
                at a minimum, enable applicants to--
                            ``(i) save data; and
                            ``(ii) submit the electronic version of the 
                        forms under this paragraph to the Secretary 
                        through such tool.''.
    (c) Languages for FAFSA.--The Secretary, in conjunction with the 
Director of the Census Bureau, shall determine the most common 
languages spoken at home in the United States and shall develop 
versions of the FAFSA form in each of those languages.
    (d) Outreach by Financial Aid Advisors.--Section 483 of the Higher 
Education Act of 1965 (20 U.S.C. 1090 et seq.) is amended by adding at 
the end the following:
    ``(i) Outreach by Financial Aid Advisors.--An institution of higher 
education may use information provided on a FAFSA to reach out to and 
counsel a student on the student's eligibility for means-tested 
benefits in which the student is not enrolled and outside scholarships 
for which a student is eligible.''.

SEC. 5. DEFINITIONS OF TOTAL INCOME AND ASSETS.

    (a) Total Income.--Section 480(a)(1) of the Higher Education Act of 
1965 (20 U.S.C. 1087vv(a)(1)) is amended to read as follows:
            ``(1) In general.--Except as provided in paragraph (2), the 
        term `total income' is equal to--
                    ``(A) in the case of an individual who has not 
                filed, and is not required to file, any Federal tax 
                return or in the case of a qualified recipient of a 
                means-tested Federal benefits program, as defined in 
                section 473(b)(3)(B), earned income for the second 
                preceding tax year minus excludable income (as defined 
                in subsection (e));
                    ``(B) in the case of an individual who filed a 
                Federal form 1040EZ, 1040A, or 1040 with no forms or 
                schedules, adjusted gross income plus untaxed income 
                and benefits for the second preceding tax year minus 
                excludable income (as defined in subsection (e)); and
                    ``(C) in the case of an individual who filed a 
                Federal form 1040 with forms or schedules or in the 
                case of an individual who filed a foreign tax return in 
                lieu of a Federal tax return, adjusted gross income 
                plus untaxed income and benefits for the second 
                preceding fiscal tax year minus excludable income (as 
                defined in subsection (e)).''.
    (b) Conforming Amendment.--Section 480(a) of the Higher Education 
Act of 1965 (20 U.S.C. 1087vv(a)) is amended--
            (1) by moving paragraph (2) two ems to the right; and
            (2) in paragraph (2), by striking ``No portion'' and 
        inserting the following: ``Amounts not included.--No portion''.
    (c) Untaxed Income and Benefits.--Section 480(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1087vv(b)) is amended to read as 
follows:
    ``(b) Untaxed Income and Benefits.--The term `untaxed income and 
benefits' means--
            ``(1) the aggregate amount of losses taken into account for 
        determining adjusted gross income on Federal form 1040;
            ``(2) the amount of any tax-exempt interest income reported 
        on Federal form 1040; and
            ``(3) amounts of foreign income excluded from adjusted 
        gross income and reported on Federal form 2555.''.
    (d) Excludable Income.--Section 480(e) of the Higher Education Act 
of 1965 (20 U.S.C. 1087vv(e)) is amended to read as follows:
    ``(e) The term `excludable income' means--
            ``(1) any student financial assistance awarded based on 
        need as determined in accordance with the provisions of this 
        part, including any income earned from work under part C of 
        this title; and
            ``(2) payments made and services provided under part E of 
        title IV of the Social Security Act (42 U.S.C. 670 et seq.) to 
        or on behalf of any child or youth over whom the State agency 
        has responsibility for placement, care, or supervision, 
        including the value of vouchers for education and training and 
        amounts expended for room and board for youth who are not in 
        foster care but are receiving services under section 477 of 
        such Act (42 U.S.C. 677).''.
    (e) Assets.--Section 480(f)(1) of the Higher Education Act of 1965 
(20 U.S.C. 1087vv(f)(1)) is amended by striking ``The term'' and all 
that follows through the period at the end and inserting the following:
                    ``(A) In determining the value of assets in a 
                determination of need under this title--
                            ``(i) in the case of an individual who has 
                        not filed, and is not required to file, any 
                        Federal tax return or in the case of a 
                        qualified recipient of a means-tested Federal 
                        benefits program, as defined in section 
                        473(b)(3)(B), the individual's assets shall be 
                        considered to be equal to zero; and
                            ``(ii) in the case of a parent of a 
                        dependent student or in the case of an 
                        independent student with dependents other than 
                        a spouse, the individual's assets shall be 
                        considered to be equal to zero if that parent 
                        or independent student filed a Federal form 
                        1040EZ, 1040A, or 1040 with no forms or 
                        schedules.
                    ``(B) In the case of an individual who filed a form 
                1040 with forms or schedules, the term assets means 
                cash on hand, including the amount in checking and 
                savings accounts, time deposits, money market funds, 
                trusts, stocks, bonds, other securities, mutual funds, 
                tax shelters, qualified education benefits (except as 
                provided in paragraph (3)), and the net value of real 
                estate, income producing property, and business and 
                farm assets, excluding the primary home.''.
    (f) Special Combat Pay.--Section 480 of the Higher Education Act of 
1965 (20 U.S.C. 1087vv) is amended--
            (1) in subsection (j), by striking paragraph (4); and
            (2) by striking subsection (n).

SEC. 6. ELIMINATING UNNECESSARY AND BURDENSOME QUESTIONS.

    (a) Prohibition.--Section 483(a) of the Higher Education Act of 
1965 (20 U.S.C. 1090(a)) is amended by adding at the end the following:
            ``(13) Prohibition of unnecessary and burdensome 
        questions.--Notwithstanding any other provision of law, the 
        Secretary shall not include on any form developed under this 
        section a question about--
                    ``(A) the applicant's criminal history, 
                registration for selective service, net worth of a 
                business or farm, taxable earnings from need-based 
                employment (such as from a Federal work-study program), 
                combat pay, cooperative education program earnings, and 
                income from any source which is not taxable for the 
                taxable year, including income attributable to a 
                pension or retirement plan, interest on tax-exempt 
                bonds, military or clergy living allowance, and 
                veterans benefits (other than education benefits); and
                    ``(B) with respect to the applicant's parent, 
                taxable earnings from need-based employment (such as 
                from a Federal work-study program), college grant or 
                scholarship aid reported to the Internal Revenue 
                Service, combat pay, cooperative education program 
                earnings, and income from any source which is not 
                taxable for the taxable year, including income 
                attributable to a pension or retirement plan, interest 
                on tax-exempt bonds, military or clergy living 
                allowance, and veterans benefits (other than education 
                benefits).''.
    (b) Removing Burdensome Requirements.--
            (1) In general.--Part G of title IV of the Higher Education 
        Act of 1965 (20 U.S.C. 1088 et seq.) is amended--
                    (A) in section 484 (20 U.S.C. 1091)--
                            (i) by striking subsections (n) and (r); 
                        and
                            (ii) by redesignating subsections (o), (p), 
                        (q), (s), and (t) as subsections (n), (o), (p), 
                        (q), and (r), respectively; and
                    (B) in section 485 (20 U.S.C. 1092)--
                            (i) by striking subsection (k); and
                            (ii) by redesignating subsections (l) and 
                        (m) as subsections (k) and (l), respectively.
            (2) Conforming amendments.--Title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070 et seq.) is amended--
                    (A) in each of subparagraphs (C) and (D) of section 
                428(b)(3) (20 U.S.C. 1078(b)(3)), by striking 
                ``485(l)'' and inserting ``485(k)'';
                    (B) in section 428B(f)(2) (20 U.S.C. 1078-2(f)(2)), 
                by striking ``484(p)'' and inserting ``484(o)'';
                    (C) in each of subparagraphs (E) and (F) of section 
                435(d)(5) (20 U.S.C. 1085(d)(5)), by striking 
                ``485(l)'' and inserting ``485(k)''; and
                    (D) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C. 
                1094(e)(2)(B)(ii)(IV)), by striking ``(l) of section 
                485'' and inserting ``(k) of section 485''.

SEC. 7. DEFINITIONS FOR HOMELESS AND FOSTER YOUTH.

    (a) Independent Student.--Section 480(d)(1)(H) of the Higher 
Education Act of 1965 (20 U.S.C. 1087vv(d)(1)(H)) is amended--
            (1) in the matter preceding clause (i)--
                    (A) by striking ``during the school year in which 
                the application is submitted'';
                    (B) by inserting ``age 23 or younger'' after 
                ``unaccompanied youth''; and
                    (C) by striking ``terms are'' and inserting ``term 
                is'';
            (2) in clause (i), by inserting ``, or a designee of the 
        liaison'' after ``Act'';
            (3) in clause (ii), by striking ``a program funded under 
        the Runaway and Homeless Youth Act'' and inserting ``an 
        emergency or transitional shelter, street outreach program, 
        homeless youth drop-in center, or other program serving 
        homeless youth,''; and
            (4) in clause (iii), by striking ``program funded under 
        subtitle B of title IV of the McKinney-Vento Homeless 
        Assistance Act (relating to emergency shelter grants)'' and 
        inserting ``Federal TRIO program or a Gaining Early Awareness 
        and Readiness for Undergraduate program under chapter 1 or 2 of 
        subpart 2 of part A,''.
    (b) Foster Care Children and Youth.--Section 103 of the Higher 
Education Act of 1965 (20 U.S.C. 1003) is amended by adding at the end 
the following:
            ``(25) Foster care children and youth.--The term `foster 
        care children and youth'--
                    ``(A) means children and youth whose care and 
                placement are the responsibility of the State or Tribal 
                agency that administers a State or Tribal plan under 
                part B or E of title IV of the Social Security Act (42 
                U.S.C. 621 et seq. and 670 et seq.), without regard to 
                whether foster care maintenance payments are made under 
                section 472 of such Act (42 U.S.C. 672) on behalf of 
                such children and youth; and
                    ``(B) includes individuals who were age 13 or older 
                when their care and placement were the responsibility 
                of a State or Tribal agency that administered a State 
                or Tribal plan under part B or E of title IV of the 
                Social Security Act (42 U.S.C. 621 et seq. and 670 et 
                seq.) and who are no longer under the care and 
                responsibility of such a State or tribal agency, 
                without regard to any such individual's subsequent 
                adoption, guardianship arrangement, or other form of 
                permanency outcome.''.

SEC. 8. STREAMLINING DETERMINATIONS AND VERIFICATION FOR HOMELESS AND 
              FOSTER YOUTH.

    Section 480(d) of the Higher Education Act of 1965 (20 U.S.C. 
1087vv(d)) is amended by adding at the end the following:
            ``(3) Simplifying the determination process for 
        unaccompanied youth.--
                    ``(A) Verification.--A financial aid administrator 
                shall accept a homelessness determination made by any 
                individual authorized to make such determinations under 
                clause (i), (ii), or (iii) of paragraph (1)(H) in the 
                absence of conflicting information. A documented phone 
                call with, or a written statement from, one of the 
                authorized individuals is sufficient verification when 
                needed. For purposes of this paragraph, a financial aid 
                administrator's disagreement with the determination 
                made by an authorized individual shall not be 
                considered conflicting information.
                    ``(B) Determination of independence.--A financial 
                aid administrator shall make a determination of 
                independence under paragraph (1)(H) if a student does 
                not have, and cannot get, documentation from any of the 
                other designated authorities described in such 
                paragraph. Such a determination shall be--
                            ``(i) based on the definitions outlined in 
                        paragraph (1)(H);
                            ``(ii) distinct from a determination of 
                        independence under paragraph (1)(I);
                            ``(iii) based on a documented interview 
                        with the student; and
                            ``(iv) limited to whether the student meets 
                        the definitions in paragraph (1)(H) and not 
                        about the reasons for the student's 
                        homelessness.
            ``(4) Simplifying the verification process for foster 
        children and youth.--
                    ``(A) Verification of independence.--If an 
                institution requires documentation to verify that a 
                student is independent based on a status described in 
                paragraph (1)(B), a financial aid administrator shall 
                consider any of the following as adequate verification:
                            ``(i) Submission of a court order or 
                        official State documentation that the student 
                        received Federal or State support in foster 
                        care.
                            ``(ii) A documented phone call with, or a 
                        written statement from--
                                    ``(I) a child welfare agency 
                                authorized by a State or county;
                                    ``(II) a Tribal child welfare 
                                authority;
                                    ``(III) an Independent Living case 
                                worker;
                                    ``(IV) a public or private foster 
                                care placing agency or foster care 
                                facility or placement;
                                    ``(V) another program serving 
                                orphans, foster children and youth, or 
                                wards of the court; or
                                    ``(VI) a probation officer.
                            ``(iii) A documented phone call with, or a 
                        written statement from, an attorney, a guardian 
                        ad litem, or a Court Appointed Special 
                        Advocate, documenting that person's 
                        relationship to the student.
                            ``(iv) A documented phone call with, or a 
                        written statement from, a representative of a 
                        Federal TRIO program or a Gaining Early 
                        Awareness and Readiness for Undergraduate 
                        program under chapter 1 or 2 of subpart 2 of 
                        part A.
                            ``(v) Verification of the student's 
                        eligibility for an education and training 
                        voucher under the John H. Chafee Foster Care 
                        Independence Program under section 477 of the 
                        Social Security Act (42 U.S.C. 677).
                            ``(vi) Submission of a copy of the 
                        student's biological or adoptive parents'--
                                    ``(I) Certificates of Death; or
                                    ``(II) newspaper obituaries.
                            ``(vii) An attestation from the student, 
                        which includes a description of why the student 
                        may qualify for a status described in paragraph 
                        (1)(B), including the approximate dates that 
                        the student was in foster care, dependent, or a 
                        ward of the court, to the best of the student's 
                        knowledge after making reasonable efforts to 
                        provide any requested documentation.
                    ``(B) Additional streamlining permitted.--Nothing 
                in this paragraph prohibits an institution from 
                implementing polices that streamline the determination 
                of independent status and improve a student's access to 
                financial aid because that student is an orphan, in 
                foster care, or a ward of the court, or was an orphan, 
                in foster care, or a ward of the court at any time when 
                the student was 13 years of age or older.
            ``(5) Timing; use of earlier determination.--
                    ``(A) Timing.--A determination under subparagraph 
                (B) or (H) of paragraph (1) for a student--
                            ``(i) shall be made as quickly as 
                        practicable;
                            ``(ii) may be made as early as the year 
                        before the award year for which the student 
                        initially submits an application; and
                            ``(iii) shall be made no later than during 
                        the award year for which the student initially 
                        submits an application.
                    ``(B) Use of earlier determination.--Any student 
                who is determined to be independent under subparagraph 
                (B) or (H) of paragraph (1) for a preceding award year 
                at an institution shall be presumed to be independent 
                for a subsequent award year at the same institution 
                unless--
                            ``(i) the student informs the institution 
                        that circumstances have changed; or
                            ``(ii) the institution has specific 
                        conflicting information about the student's 
                        independence, and has informed the student of 
                        this information and the opportunity to 
                        challenge such information through a documented 
                        interview or an impartial review by the Student 
                        Loan Ombudsman pursuant to section 141(f)(3).
            ``(6) Retention of documents.--A financial aid 
        administrator shall retain all documents related to the 
        determination of independence under subparagraph (B) or (H) of 
        paragraph (1), including documented interviews, for the 
        duration of the student's enrollment at the institution and for 
        a minimum of 1 year after the student is no longer enrolled at 
        the institution.''.

SEC. 9. CONSOLIDATING QUESTIONS REGARDING HOMELESS STATUS ON THE FAFSA.

    Section 483(a)(4) of the Higher Education Act of 1965 (20 U.S.C. 
1090(a)(4)) is amended by adding at the end the following:
                    ``(C) Single question regarding homeless status.--
                The Secretary shall ensure that, on each form developed 
                under this section for which the information is 
                applicable, there is a single, easily understood 
                screening question to identify an applicant for aid who 
                is--
                            ``(i) an unaccompanied homeless child or 
                        youth (as such term is defined in section 725 
                        of the McKinney-Vento Homeless Assistance Act); 
                        or
                            ``(ii) an unaccompanied youth who is self-
                        supporting and at risk of homelessness.''.

SEC. 10. ELIGIBILITY FOR DREAMERS.

    Section 484 of the Higher Education Act of 1965 (20 U.S.C. 1091), 
as amended by section 6(b), is further amended--
            (1) in subsection (a)(5), by inserting ``or be a Dreamer 
        student'' after ``becoming a citizen or permanent resident''; 
        and
            (2) by adding at the end the following:
    ``(s) Dreamer Student.--
            ``(1) In general.--In this section, the term `Dreamer 
        student' means an alien (as defined in section 101(a) of the 
        Immigration and Nationality Act (8 U.S.C. 1101(a))) who--
                    ``(A) has been continuously physically present in 
                the United States for not less than the 4-year period 
                preceding the date of enactment of the Simplifying 
                Financial Aid for Students Act of 2018;
                    ``(B) was younger than 18 years of age on the date 
                on which the alien initially entered the United States; 
                and
                    ``(C)(i) has been admitted to an institution of 
                higher education;
                    ``(ii) has earned a high school diploma or a 
                commensurate alternative award from a public or private 
                high school, or has obtained a general education 
                development certificate recognized under State law or a 
                high school equivalency diploma in the United States;
                    ``(iii) is enrolled in secondary school or in an 
                education program assisting students in obtaining a 
                regular high school diploma or its recognized 
                equivalent under State law, or in passing a general 
                educational development exam, a high school equivalence 
                diploma examination, or other similar State-authorized 
                exam, and has made satisfactory progress in obtaining 
                such diploma or passing such exam; or
                    ``(iv)(I) has served for not less than 4 years in 
                the uniformed services (as defined in section 101(a) of 
                title 10, United States Code); and
                    ``(II) in the case of an alien who has been 
                discharged from the uniformed services, has received an 
                honorable discharge.
            ``(2) Hardship exception.--The Secretary shall issue 
        regulations that direct when the Department shall waive the 
        requirement of subparagraph (A) or (B), or both, of paragraph 
        (1) for an individual to qualify as a Dreamer student under 
        such paragraph, if the individual--
                    ``(A) demonstrates compelling circumstances for the 
                inability to satisfy the requirement of such 
                subparagraph (A) or (B), or both; and
                    ``(B) satisfies the requirement of paragraph 
                (1)(C).''.
                                 <all>